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Quanex Building Products Announces Third Quarter 2019 Results

Significant Margin Expansion in EU & NA Fenestration Segments
Above Market Growth Continues in EU & NA Fenestration Segments
Repaid $32.5 Million of Bank Debt

HOUSTON, Sept. 05, 2019 (GLOBE NEWSWIRE) -- Quanex Building Products Corporation(NYSE:NX) (“Quanex” or the “Company”) today announced its results for the three months ended July 31, 2019.

Bill Griffiths, Chairman, President and Chief Executive Officer, commented, “We continue to benefit from the successful implementation of pricing initiatives and we are performing well operationally, both of which contributed to margin expansion of approximately 100 basis points on a consolidated basis during the quarter.  More specifically, margins expanded by approximately 180 basis points in our European and North American Fenestration segments.  Revenue was impacted by lower-than-expected volumes, primarily in our North American Cabinet Components segment, coupled with inclement weather in the U.S.  Despite softer-than-expected volumes, we benefitted from better pricing year-over-year and our European Fenestration segment realized above market sales growth of 9.3%, excluding foreign exchange impact, and sales in our North American Fenestration segment grew at 2.2% during the quarter, which compares favorably to Ducker’s latest window shipment estimate of negative 2.3% growth for the three months ended June 30, 2019.  Solid free cash flow generation during the third quarter allowed us to pay down $32.5 million in bank debt and buyback approximately $1.6 million in stock.”    

Third Quarter 2019 Results Summary  

The Company reported the following selected financial results:

    Three Months Ended July 31,
    2019   2018
Net Sales   $238.5   $239.8
Net Income   $11.8   $10.8
Diluted EPS   $0.36   $0.31
         
Adjusted Net Income   $13.7   $11.6
Adjusted Diluted EPS   $0.41   $0.33
Adjusted EBITDA   $32.8   $30.5
         
Cash provided by operating activities   $29.9   $26.8
Free Cash Flow   $25.9   $21.0

(See Non-GAAP Terminology Definitions and Disclaimers section, Non-GAAP Financial Measure Disclosure table Selected Segment Data table and Free Cash Flow Reconciliation table for additional information)

The decrease in net sales during the third quarter of 2019 was primarily attributable to a weaker demand environment, mainly in the North American Cabinet Components segment, and inclement weather in the U.S.  However, the European and North American Fenestration segments continued to generate net sales growth above that of their respective markets, largely due to price increases related to raw material inflation recovery. (See Sales Analysis table for additional information)

The increase in earnings was mostly driven by the successful implementation of pricing initiatives combined with operational efficiency gains. 

As of July 31, 2019, Quanex’s leverage ratio of Net Debt to LTM Adjusted EBITDA decreased to 2.0x.  Quanex continues to expect to end fiscal 2019 with a leverage ratio between 1.5x and 2.0x.  (See Non-GAAP Terminology Definitions and Disclaimers section for additional information)

Share Repurchases

The Company’s Board of Directors authorized a $60 million share repurchase program in September of 2018.  Repurchases under this program will be made in open market transactions or privately negotiated transactions, subject to market conditions, applicable legal requirements and other relevant factors.  The program does not have an expiration date or a limit on the number of shares that may be repurchased.  During the three months ended July 31, 2019, Quanex repurchased 93,352 shares of common stock for approximately $1.6 million at an average price of $17.50 per share.  As of July 31, 2019, approximately $21.6 million remained under the existing share repurchase authorization.  

Outlook

Bill Griffiths, Chairman, President and Chief Executive Officer, stated, “Looking ahead, we expect a strong finish to our fiscal year from a cash flow and earnings perspective, but consolidated revenue is trending below prior expectations.  As such, we now expect consolidated net sales for the full year 2019 to be flat year-over-year.  We continue to convert well and are maintaining the midpoint of our original Adjusted EBITDA* guidance, but are revising the guidance to a more narrow range of $100 million to $105 million.  We intend to stay focused on deleveraging the balance sheet for the remainder of the year while opportunistically repurchasing stock.  In the future, we will be comfortable with a Leverage Ratio of around 1.5x, at which time we will evaluate all options with respect to our capital allocation priorities in an effort to enhance shareholder value.” 

*When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort.  Certain items required for such a reconciliation are outside of the Company’s control and/or cannot be reasonably predicted or estimated, such as the provision for income taxes.

Recent Events

The Company’s Board of Directors declared a quarterly cash dividend of $0.08 per share on Quanex’s common stock, payable September 30, 2019, to shareholders of record on September 16, 2019.

Conference Call and Webcast Information

The Company has scheduled a conference call for Friday, September 6, 2019, at 11:00 a.m. ET (10:00 a.m. CT).  To participate in the conference call dial (877) 388-2139 for domestic callers and (541) 797-2983 for international callers, in both cases using the conference passcode 6297156, and ask for the Quanex call a few minutes prior to the start time.  A link to the live audio webcast will also be available on the Company’s website at http://www.quanex.com in the Investors section under Presentations & Events.  A telephonic replay of the call will be available approximately two hours after the live broadcast ends and will be accessible through September 20, 2019.  To access the replay dial (855) 859-2056 for domestic callers and (404) 537-3406 for international callers, in both cases referencing conference passcode 6297156. 

About Quanex

Quanex Building Products Corporation is an industry-leading manufacturer of components sold to Original Equipment Manufacturers (OEMs) in the building products industry.  Quanex designs and produces energy-efficient fenestration products in addition to kitchen and bath cabinet components.  For more information contact Scott Zuehlke, Vice President, Investor Relations & Treasurer, at 713-877-5327 or scott.zuehlke@quanex.com.

Non-GAAP Terminology Definitions and Disclaimers

Adjusted Net Income (Loss) (defined as net income further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of fixed assets, restructuring charges, asset impairment charges, other net adjustments related to foreign currency transaction gain/loss and effective tax rates reflecting impacts of adjustments on a with and without basis) and Adjusted EPS are non-GAAP financial measures that Quanex believes provide a consistent basis for comparison between periods and more accurately reflects operational performance, as they are not influenced by certain income or expense items not affecting ongoing operations. EBITDA (defined as net income or loss before interest, taxes, depreciation and amortization and other, net) and Adjusted EBITDA (defined as EBITDA further adjusted to exclude purchase price accounting inventory step-ups, transaction costs, certain severance charges, gain/loss on the sale of fixed assets, restructuring charges and asset impairment charges) are non-GAAP financial measures that the Company uses to measure operational performance and assist with financial decision-making.  When Quanex provides expectations for Adjusted EBITDA on a forward-looking basis, a reconciliation of the differences between the non-GAAP expectations and corresponding GAAP measures is generally not available without unreasonable effort.  The Company is not able to provide reconciliations of forward-looking Adjusted EBITDA to GAAP financial measures because certain items required for such reconciliations are outside of Quanex’s control and/or cannot be reasonably predicted, such as the provision for income taxes.  Net Debt is calculated using the sum of current maturities of long-term debt and long-term debt, minus cash and cash equivalents.  The leverage ratio of Net Debt to LTM Adjusted EBITDA is a financial measure that the Company believes is useful to investors and financial analysts in evaluating Quanex’s leverage.  In addition, with certain limited adjustments, this leverage ratio is the basis for a key covenant in the Company’s credit agreement.  Free Cash Flow is a non-GAAP measure calculated using cash provided by operating activities less capital expenditures.   Free Cash Flow is measured before application of certain contractual commitments (including capital lease obligations), and accordingly is not a true measure of Quanex’s residual cash flow available for discretionary expenditures.  The Company believes that the presented non-GAAP measures provide a consistent basis for comparison between periods, and will assist investors in understanding Quanex’s financial performance when comparing results to other investment opportunities.  The presented non-GAAP measures may not be the same as those used by other companies.  The Company does not intend for this information to be considered in isolation or as a substitute for other measures prepared in accordance with U.S. GAAP. 

Forward Looking Statements

Statements that use the words “estimated,” “expect,” “could,” “should,” “believe,” “will,” “might,” or similar words reflecting future expectations or beliefs are forward-looking statements. The forward-looking statements include, but are not limited to, the Company’s future operating results, future financial condition, future uses of cash and other expenditures, expenses and tax rates, expectations relating to Quanex’s industry, and the Company’s future growth, including any guidance discussed in this press release.  The statements and guidance set forth in this release are based on current expectations.  Actual results or events may differ materially from this release.  For a complete discussion of factors that may affect Quanex’s future performance, please refer to the Company’s Annual Report on Form 10-K for the fiscal year ended October 31, 2018, under the sections entitled “Cautionary Note Regarding Forward-Looking Statements” and “Risk Factors”.  Any forward-looking statements in this press release are made as of the date hereof, and Quanex undertakes no obligation to update or revise any forward-looking statements to reflect new information or events.

 
 
QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF NET (LOSS) INCOME
(In thousands, except per share data)
(Unaudited)
                 
    Three Months Ended July 31,   Nine Months Ended July 31,
      2019     2018 (1)     2019     2018 (1)
                                 
Net sales   $ 238,461     $ 239,821     $ 653,472     $ 645,699  
Cost of sales     181,357       185,811       511,292       509,357  
Selling, general and administrative     25,718       24,246       77,466       72,217  
Restructuring charges     94       243       281       851  
Depreciation and amortization     12,182       12,691       37,158       39,274  
Asset impairment charges     -       -       29,978       -  
Operating income (loss)     19,110       16,830       (2,703 )     24,000  
Interest expense     (2,570 )     (2,641 )     (7,614 )     (7,584 )
Other, net     259       195       461       884  
Income (loss) before income taxes     16,799       14,384       (9,856 )     17,300  
Income tax (expense) benefit     (4,958 )     (3,631 )     (5,926 )     2,536  
Net income (loss)   $ 11,841     $ 10,753     $ (15,782 )   $ 19,836  
                                 
Income (loss) per common share, basic   $ 0.36     $ 0.31     $ (0.48 )   $ 0.57  
Income (loss) per common share, diluted   $ 0.36     $ 0.31     $ (0.48 )   $ 0.56  
                                 
Weighted average common shares outstanding:                                
Basic     32,899       34,840       32,984       34,766  
Diluted     33,162       35,120       32,984       35,125  
                                 
Cash dividends per share   $ 0.08     $ 0.04     $ 0.24     $ 0.12  
                                 
(1) Updated to reflect adoption of ASU 2017-07.                                
                                 

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited)
         
    July 31, 2019   October 31, 2018 (1)
ASSETS                
Current assets:                
Cash and cash equivalents   $ 10,651     $ 29,003  
Accounts receivable, net     82,302       84,014  
Inventories, net     84,762       70,730  
Prepaid and other current assets     8,270       7,296  
Total current assets     185,985       191,043  
Property, plant and equipment, net     190,447       201,370  
Goodwill     186,829       219,627  
Intangible assets, net     108,620       121,919  
Other assets     8,183       9,255  
Total assets   $ 680,064     $ 743,214  
                 
LIABILITIES AND STOCKHOLDERS' EQUITY                
Current liabilities:                
Accounts payable   $ 52,602     $ 52,389  
Accrued liabilities     30,056       45,968  
Income taxes payable     3,101       2,780  
Current maturities of long-term debt     871       1,224  
Total current liabilities     86,630       102,361  
Long-term debt     191,109       209,332  
Deferred pension and postretirement benefits     6,580       4,218  
Deferred income taxes     19,051       17,510  
Other liabilities     15,344       14,571  
Total liabilities     318,714       347,992  
Stockholders’ equity:                
Common stock     374       374  
Additional paid-in-capital     254,053       254,678  
Retained earnings     219,340       243,904  
Accumulated other comprehensive loss     (38,274 )     (30,705 )
Treasury stock at cost     (74,143 )     (73,029 )
Total stockholders’ equity     361,350       395,222  
Total liabilities and stockholders' equity   $ 680,064     $ 743,214  
                 
(1) Updated to reflect accounting change to FIFO cost method.    
     

 

QUANEX BUILDING PRODUCTS CORPORATION
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOW
(In thousands)
(Unaudited)
   
  Nine Months Ended July 31,
    2019       2018  
Operating activities:              
Net (loss) income $ (15,782 )   $ 19,836  
Adjustments to reconcile net (loss) income to cash provided by operating activities:              
Depreciation and amortization   37,158       39,274  
Stock-based compensation   1,424       1,002  
Deferred income tax   1,930       (5,788 )
Asset impairment charges   29,978       -  
Other, net   1,724       404  
Changes in assets and liabilities:              
Decrease (increase) in accounts receivable   323       (1,247 )
(Increase) decrease in inventory   (14,747 )     310  
Increase in other current assets   (1,022 )     (1,242 )
Increase in accounts payable   1,562       1,161  
Decrease in accrued liabilities   (15,366 )     (7,565 )
Increase in income taxes payable   396       231  
Increase in deferred pension and postretirement benefits   2,351       2,179  
(Decrease) increase in other long-term liabilities   (143 )     210  
Other, net   250       (312 )
Cash provided by operating activities   30,036       48,453  
Investing activities:              
Capital expenditures   (16,984 )     (21,098 )
Proceeds from disposition of capital assets   315       260  
Cash used for investing activities   (16,669 )     (20,838 )
Financing activities:              
Borrowings under credit facilities   66,500       33,500  
Repayments of credit facility borrowings   (84,000 )     (62,750 )
Repayments of other long-term debt   (1,102 )     (1,394 )
Common stock dividends paid   (7,990 )     (4,202 )
Issuance of common stock   2,710       3,767  
Payroll tax paid to settle shares forfeited upon vesting of stock   (330 )     (960 )
Purchase of treasury stock   (6,336 )     -  
Cash used for financing activities   (30,548 )     (32,039 )
Effect of exchange rate changes on cash and cash equivalents   (1,171 )     (631 )
Decrease in cash and cash equivalents   (18,352 )     (5,055 )
Cash and cash equivalents at beginning of period   29,003       17,455  
Cash and cash equivalents at end of period $ 10,651     $ 12,400  
               

 

QUANEX BUILDING PRODUCTS CORPORATION
Free Cash Flow Reconciliation
(In thousands)
(Unaudited)
                 
The following table reconciles the Company's calculation of Free Cash Flow, a non-GAAP measure, to its most directly comparable GAAP measure.  The Company defines Free Cash Flow as cash provided by operating activities less capital expenditures.
                 
    Three Months Ended July 31,   Nine Months Ended July 31,
      2019       2018       2019       2018  
Cash provided by operating activities   $ 29,893     $ 26,838     $ 30,036     $ 48,453  
Capital expenditures     (3,962 )     (5,885 )     (16,984 )     (21,098 )
Free Cash Flow   $ 25,931     $ 20,953     $ 13,052     $ 27,355  

 

QUANEX BUILDING PRODUCTS CORPORATION
NON-GAAP FINANCIAL MEASURE DISCLOSURE
(In thousands, except per share data)
(Unaudited)
 
                                                         
    Three Months Ended     Three Months Ended     Nine Months Ended     Nine Months Ended  
Reconciliation of Adjusted Net Income and Adjusted EPS   July 31, 2019     July 31, 2018     July 31, 2019     July 31, 2018  
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
    Net
Income
  Diluted
EPS
 
Net income (loss) as reported   $ 11,841     $ 0.36       $ 10,753     $ 0.31       $ (15,782 )   $ (0.48 )     $ 19,836     $ 0.56    
Reconciling items from below     1,809       0.05         828       0.02         33,595       1.02         (4,727 )     (0.13 )  
Adjusted net income and adjusted EPS   $ 13,650     $ 0.41       $ 11,581     $ 0.33       $ 17,813     $ 0.54       $ 15,109     $ 0.43    
                                         
Reconciliation of Adjusted EBITDA   Three Months Ended
July 31, 2019
    Three Months Ended
July 31, 2018
    Nine Months Ended
July 31, 2019
    Nine Months Ended
July 31, 2018
 
    Reconciliation         Reconciliation         Reconciliation         Reconciliation      
Net income (loss) as reported   $ 11,841           $ 10,753           $ (15,782 )         $ 19,836        
Income tax expense (benefit)     4,958             3,631             5,926             (2,536 )      
Other, net     (259 )           (195 )           (461 )           (884 )      
Interest expense     2,570             2,641             7,614             7,584        
Depreciation and amortization     12,182             12,691             37,158             39,274        
EBITDA     31,292             29,521             34,455             63,274        
Reconciling items from below     1,495             1,027             33,777             1,649        
Adjusted EBITDA   $ 32,787           $ 30,548           $ 68,232           $ 64,923        
                                         
Reconciling Items   Three Months Ended
July 31, 2019
    Three Months Ended
July 31, 2018
    Nine Months Ended
July 31, 2019
    Nine Months Ended
July 31, 2018
 
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
    Income
Statement
  Reconciling
Items
 
Net sales   $ 238,461     $ -       $ 239,821     $ -       $ 653,472     $ -       $ 645,699     $ -    
Cost of sales     181,357       -         185,811       -         511,292       -         509,357       -    
Selling, general and administrative     25,718       (1,401 )  (1)     24,246       (784 )  (1)     77,466       (3,518 )  (1)     72,217       (798 )  (1)
Restructuring charges     94       (94 )  (2)     243       (243 )  (2)     281       (281 )  (2)     851       (851 )  (2)
Asset impairment charges     -       -         -       -         29,978       (29,978 )  (3)     -       -    
EBITDA     31,292       1,495         29,521       1,027         34,455       33,777         63,274       1,649    
Depreciation and amortization     12,182       -         12,691       -         37,158       -         39,274       (852 )  (4)
Operating income (loss)     19,110       1,495         16,830       1,027         (2,703 )     33,777         24,000       2,501    
Interest expense     (2,570 )     -         (2,641 )     -         (7,614 )     -         (7,584 )     -    
Other, net     259       (112 )  (5)     195       79    (5)     461       (67 )  (5)     884       (88 )  (5)
Income (loss) before income taxes     16,799       1,383         14,384       1,106         (9,856 )     33,710         17,300       2,413    
Income tax (expense) benefit     (4,958 )     426    (6)     (3,631 )     (278 )  (6)     (5,926 )     (115 )  (6)     2,536       (7,140 )  (6 
Net income (loss)   $ 11,841     $ 1,809       $ 10,753     $ 828       $ (15,782 )   $ 33,595       $ 19,836     $ (4,727 )  
                                         
Diluted (loss) earnings per share   $ 0.36           $ 0.31           $ (0.48 )         $ 0.56        
                                         
(1) Transaction and advisory fees, $1.2 million of executive severance charges in the three and nine months ended July 31, 2019, and in the nine months ended July 31, 2019, $1.2 million of severance related to a reorganization.
(2) Restructuring charges relate to the closure of several manufacturing plant facilities.
(3) Asset impairment charges relate to a goodwill impairment in the North American Cabinet Components segment.
(4) Accelerated depreciation for plant re-layout in the North American Cabinet Components segment.
(5) Foreign currency transaction (gains) losses.
(6) Impact on a with and without basis.  Three and nine months ended July 31, 2019 include $0.8 million and $0.6 million of tax expense adjustment, respectively, and nine months ended July 31, 2018 includes $6.5 million of tax benefit adjustment related to the Tax Cuts and Jobs Act.
 

 

QUANEX BUILDING PRODUCTS CORPORATION
SELECTED SEGMENT DATA
(In thousands)
(Unaudited)
                     
This table provides operating income (loss), EBITDA, and Adjusted EBITDA by reportable segment.  Non-operating expense and income tax expense are not allocated to the reportable segments.
                                         
                                         
    NA Fenestration (1)   EU Fenestration (1)   NA Cabinet Components   Unallocated
Corp & Other
  Total
Three months ended July 31, 2019                    
Net sales   $ 136,259     $ 44,326     $ 58,689     $ (813 )   $ 238,461  
Cost of sales     101,693       30,708       49,389       (433 )     181,357  
Selling, general and administrative     11,950       6,038       4,484       3,246       25,718  
Restructuring charges     94       -       -       -       94  
Depreciation and amortization     6,578       2,213       3,258       133       12,182  
Operating income (loss)     15,944       5,367       1,558       (3,759 )     19,110  
Depreciation and amortization     6,578       2,213       3,258       133       12,182  
EBITDA     22,522       7,580       4,816       (3,626 )     31,292  
Transaction and advisory fees     -       -       -       250       250  
Severance charges     -       -       -       1,151       1,151  
Restructuring charges     94       -       -       -       94  
Adjusted EBITDA   $ 22,616     $ 7,580     $ 4,816     $ (2,225 )   $ 32,787  
Adjusted EBITDA Margin %     16.6 %     17.1 %     8.2 %         13.7 %
                     
Three months ended July 31, 2018 (2)                    
Net sales   $ 133,397     $ 42,661     $ 65,114     $ (1,351 )   $ 239,821  
Cost of sales     101,179       30,840       54,776       (984 )     185,811  
Selling, general and administrative (3)     12,525       5,292       3,280       3,149       24,246  
Restructuring charges     240       -       3       -       243  
Depreciation and amortization     6,741       2,352       3,432       166       12,691  
Operating income (loss)     12,712       4,177       3,623       (3,682 )     16,830  
Depreciation and amortization     6,741       2,352       3,432       166       12,691  
EBITDA     19,453       6,529       7,055       (3,516 )     29,521  
Transaction and advisory fees     -       -       -       784       784  
Restructuring charges     240       -       3       -       243  
Adjusted EBITDA   $ 19,693     $ 6,529     $ 7,058     $ (2,732 )   $ 30,548  
Adjusted EBITDA Margin %     14.8 %     15.3 %     10.8 %         12.7 %
                     
Nine months ended July 31, 2019                    
Net sales   $ 360,654     $ 121,203     $ 175,377     $ (3,762 )   $ 653,472  
Cost of sales     278,877       84,139       150,944       (2,668 )     511,292  
Selling, general and administrative     37,240       17,444       13,914       8,868       77,466  
Restructuring charges     281       -       -       -       281  
Depreciation and amortization     20,208       6,669       9,902       379       37,158  
Asset impairment charges     -       -       29,978       -       29,978  
Operating income (loss)     24,048       12,951       (29,361 )     (10,341 )     (2,703 )
Depreciation and amortization     20,208       6,669       9,902       379       37,158  
EBITDA     44,256       19,620       (19,459 )     (9,962 )     34,455  
Asset impairment charges     -       -       29,978       -       29,978  
Transaction and advisory fees     -       -       -       1,217       1,217  
Severance charges     -       -       -       2,301       2,301  
Restructuring charges     281       -       -       -       281  
Adjusted EBITDA   $ 44,537     $ 19,620     $ 10,519     $ (6,444 )   $ 68,232  
Adjusted EBITDA Margin %     12.3 %     16.2 %     6.0 %         10.4 %
                     
Nine months ended July 31, 2018 (2)                    
Net sales   $ 350,280     $ 115,481     $ 183,705     $ (3,767 )   $ 645,699  
Cost of sales     269,660       83,261       159,128       (2,692 )     509,357  
Selling, general and administrative (3)     39,371       16,798       12,368       3,680       72,217  
Restructuring charges     728       -       123       -       851  
Depreciation and amortization     20,561       7,328       10,957       428       39,274  
Operating income (loss)     19,960       8,094       1,129       (5,183 )     24,000  
Depreciation and amortization     20,561       7,328       10,957       428       39,274  
EBITDA     40,521       15,422       12,086       (4,755 )     63,274  
Transaction related costs     -       -       -       798       798  
Restructuring charges     728       -       123       -       851  
Adjusted EBITDA   $ 41,249     $ 15,422     $ 12,209     $ (3,957 )   $ 64,923  
Adjusted EBITDA Margin %     11.8 %     13.4 %     6.6 %         10.1 %
                     
(1) NA Fenestration and EU Fenestration were previously named "NA Engineered Components" and "EU Engineered Components," respectively.            
(2) Updated to reflect the adoption of ASU 2017-07.                    
(3) Updated to reflect a reduction in corporate allocations of $1.2 million and $2.1 million during the three and nine months ended July 31, 2018 due to a change in allocation methodology during the fourth quarter of 2018.
 

 

QUANEX BUILDING PRODUCTS CORPORATION
SALES ANALYSIS
(In thousands)
(Unaudited)
                 
    Three Months Ended   Nine Months Ended
    July 31, 2019   July 31, 2018   July 31, 2019   July 31, 2018
                 
NA Fenestration:              
  United States - fenestration $ 119,481     $ 112,914     $ 312,509     $ 297,700  
  International - fenestration   7,172       11,851       23,474       27,758  
  United States - non-fenestration   3,982       4,675       12,290       13,518  
  International - non-fenestration   5,624       3,957       12,381       11,304  
    $ 136,259     $ 133,397     $ 360,654     $ 350,280  
EU Fenestration (1):              
  International - fenestration $ 36,342     $ 34,881     $ 102,038     $ 97,597  
  International - non-fenestration   7,984       7,780       19,165       17,884  
    $ 44,326     $ 42,661     $ 121,203     $ 115,481  
NA Cabinet Components:              
  United States - fenestration $ 3,561     $ 3,650     $ 9,909     $ 10,500  
  United States - non-fenestration   54,512       60,843       163,694       171,547  
  International - non-fenestration   616       621       1,774       1,658  
    $ 58,689     $ 65,114     $ 175,377     $ 183,705  
Unallocated Corporate & Other:              
  Eliminations $ (813 )   $ (1,351 )   $ (3,762 )   $ (3,767 )
    $ (813 )   $ (1,351 )   $ (3,762 )   $ (3,767 )
                 
Net Sales $ 238,461     $ 239,821     $ 653,472     $ 645,699  
                 
(1) Reflects reductions of $2.1 million and $6.5 million in revenue associated with foreign currency exchange rate impacts for the three and nine months ended July 31, 2019.
                 

 

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Source: Quanex Building Products Corporation

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